Van Elle Holdings, one of Britain’s largest ground engineering contractors, has warned that full-year trading will fall materially below market expectations.
Shares in Van Elle sank over 14% as the firm blamed continued challenging conditions across its core sectors.
Revenue has failed to increase as anticipated year-to-date, and the company said profitability is now expected to trail both forecasts and prior-year performance. This is not what investors want to hear.
Echoing the sentiments of major housebuilders in their recent releases, Van Elle highlighted slow approvals as a reason for their revised forecasts.
The shortfall stems from ongoing spending constraints and contract delays, particularly those linked to Building Safety Act approvals for high-rise residential projects.
The recovery in their main markets is also yet to materialise, further weighing on revenue.
These difficulties, which plagued the company throughout its previous financial year ending April 2025, are now persisting in the new financial year.
Despite near-term pressures, the group maintains a robust order book of £47.3m as of 31st July 2025, up from £41.5m three months earlier.
The company will provide its next trading update for the six months ending 30th October in early December.